diff --git a/is_anagram/anagram.py b/is_anagram/anagram.py
new file mode 100644
index 0000000..94e1c46
--- /dev/null
+++ b/is_anagram/anagram.py
@@ -0,0 +1,10 @@
+def is_anagram_v1(string1, string2):
+    """Returns True if both strings are anagrams."""
+    letters1 = list(string1.lower())
+    letters2 = list(string2.lower())
+    letters1.sort()
+    letters2.sort()
+    return letters1 == letters2
+
+
+is_anagram = is_anagram_v1
diff --git a/is_anagram/test_is_anagram.py b/is_anagram/test_is_anagram.py
new file mode 100644
index 0000000..662eecc
--- /dev/null
+++ b/is_anagram/test_is_anagram.py
@@ -0,0 +1,49 @@
+from __future__ import unicode_literals
+import unittest
+
+from anagram import is_anagram
+
+
+class IsAnagramTests(unittest.TestCase):
+
+    """Tests for is_anagram."""
+
+    def test_short_anagram(self):
+        self.assertTrue(is_anagram("tea", "eat"))
+
+    def test_different_lengths(self):
+        self.assertFalse(is_anagram("tea", "treat"))
+
+    def test_sink_and_skin(self):
+        self.assertTrue(is_anagram("sink", "skin"))
+
+    def test_same_letters_different_lengths(self):
+        self.assertFalse(is_anagram("sinks", "skin"))
+
+    def test_different_capitalization(self):
+        self.assertTrue(is_anagram("Trey", "Yert"))
+        self.assertTrue(is_anagram("Listen", "silent"))
+
+    # To test the Bonus part of this exercise, comment out the following line
+    @unittest.expectedFailure
+    def test_spaces_ignored(self):
+        phrase1 = "William Shakespeare"
+        phrase2 = "I am a weakish speller"
+        self.assertTrue(is_anagram(phrase1, phrase2))
+        self.assertFalse(is_anagram("a b c", "a b d"))
+
+    # To test the Bonus part of this exercise, comment out the following line
+    @unittest.expectedFailure
+    def test_punctation_ignored(self):
+        phrase1 = "A diet"
+        phrase2 = "I'd eat"
+        self.assertTrue(is_anagram(phrase1, phrase2))
+
+    # To test the Bonus part of this exercise, comment out the following line
+    @unittest.expectedFailure
+    def test_characters_with_accents(self):
+        self.assertTrue(is_anagram("Siobhán Donaghy", "Shanghai Nobody"))
+
+
+if __name__ == "__main__":
+    unittest.main(verbosity=2)